Inflation falls below 8% but UK remains 'drastic outlier'

Core inflation falls to 6.9% since March 2022

James Baxter-Derrington
clock • 2 min read

The UK Consumer Prices Index (CPI) has fallen further than expected in June, with the Office for National Statistics registering a reading of 7.9% compared to economist predictions of 8.2%, but the UK remains at odds with other developed nations.

Core inflation also came in below expectations, with a reading of 6.9% compared with predictions of 7.1%. While both measures have offered a positive surprise, investors, economists and the chancellor are veering on the side of caution. Chancellor Jeremy Hunt welcomed the lowest inflation reading since March 2022, but asserted HM Treasury was not "complacent" and acknowledged the "huge worry" high prices pose for businesses and families. He added: "The best and only way we can ease this pressure and get our economy growing again is by sticking to the plan to halve inflation this ye...

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